Initial Coin Offering (ICO)

An initial coin offering (ICO), or an initialcurrency offering, is a fundraising method based on blockchain technology used primarily by start-ups. It’s a cryptocurrency equivalent to an initial public offering (IPO) – a company’s entry into the stock market. ICOs can serve two purposes: they primarily provide a source of funding for the start-up, but, unlike stocks, they can also present some utility for the coin buyer – e.g., in P2P lending, the possibility to reinvest the bought “tokens”. Several P2P lending sites have raised funds this way. However, since ICOs are little regulated, caution is advised.